Corporate Travel Management emerges from trading halt with big acquisition
Corporate Travel Management (CTM) has entered into a binding agreement to acquire a US travel management company for US$200.4 million ($274.5 million).
After announcing a trading halt on the Australian Securities Exchange (ASX) yesterday morning, CTM emerged today with news of its acquisition of Travel & Transport, which is based in Omaha, Nebraska.
The company, which was founded in 1946 and also has a European presence, generated US$2.8 billion ($4 billion) in total transaction value during the 2019 calendar year, 60 per cent of which was from corporate air travel, and 30 per cent of which was from hotels.
In its announcement on the ASX this morning, CTM said Travel & Transport’s customer mix is “highly complementary” to its offering, with a focus on professional services and healthcare clients.
Travel & Transport also owns Radius Travel, which operates a large-scale hotel program with a number of prominent brands across 160 countries.
CTM will fund the acquisition via a fully underwritten entitlement offer to raise $375 million.
The entitlement offer will result in approximately 27 million new shares being issued in total, equivalent to approximately a quarter of CTM’s total shares outstanding upon completion of the offer.
All of CTM’s non-executive directors have indicated that they will participate in the entitlement offer. However, company founder and managing director Jamie Pherous (pictured above) has indicated that he won’t participate.
Additional capital is also being raised by CTM to fund acquisition costs, integration costs, provide additional liquidity to fund potential Travel & Transport losses for a prolonged period, balance sheet flexibility, and provide capacity for other acquisitions.
The acquisition is expected to be completed in late October, and is subject to, amongst other things, antitrust approval and the receipt of a satisfactory fairness opinion by the trustee of Travel & Transport’s employee stock ownership plan.
While the acquisition of Travel & Transport is likely to represent a significant change to the scale of CTM’s activities, the ASX has confirmed that the company is not required to obtain shareholder approval for the transaction.
Kevin O’Malley, who is the incumbent CEO of Travel & Transport, will lead the combined entity once the deal is done. O’Malley, along with other key Travel & Transport executives will also invest in CTM shares.
Commenting on the acquisition, Pherous said: “We are excited to bring our two companies together under the CTM umbrella.
“Travel & Transport has an incredible reputation and a long history of success within the global travel industry, and we have shared views about delivering personalised service and proprietary technology to generate strong returns for clients on their travel investments.”
O’Malley said: “Travel & Transport has been in business for 74 years, growing from a one-person operation in Omaha, Nebraska, to one of the largest corporate travel management companies in the US.
“We are excited about the opportunities for our people and our clients by becoming part of a growing, world-class travel management company.
“We were very impressed with CTM’s technology, in particular the Lightning online booking tool, and CTM’s strength in the Asia-Pacific region. CTM will be a great place for our employees to call home.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
acquisition corporate travel corporate travel management ctm Radius Travel Travel & Transport travel managementLatest News
Smartraveller keeps US green despite ‘potential for unrest and violence’ amidst presidential election
Whilst it may be safe to travel to the US, your holiday might be more peaceful if you hold off.
BESydney CEO Lyn Lewis-Smith to depart after 12 years
12 years is a pretty impressive tenure! We are sure Lyn Lewis-Smith will be very much missed.
Meet Roya I’Anson – the unstoppable hotelier who became a GM at JUST 27 after starting out cleaning rooms
At 27 the biggest responsibility we had was watering our housemate's pot plant. That didn't end well...
Kochi showcases its isolated Japanese appeal
Visiting isolated places is great, although you might want to brush up on your Japanese before you go.
Adelaide Marriott Hotel brings new life to city’s historic General Post Office
We once slept in a post office, but that ended up with a police caution. This is a better time.
APT brings the outback to Melbourne with custom Mercedes-Benz 4WDs
We thought this meant they were bringing trucks of kangaroos and wombats into Melbourne, sadly not.
Stories Unseen expands to Adelaide
If you hate real people, but love local industry knowledge, then this is for you!
To get the most out of France, take the Back-Roads
Just in case you needed more reasons to extend your visit to Europe in 2025, this is it!
Catriona Rowntree reveals her Top 10 Tips for the cruise season
Catriona has been telling how to get away for a while now, we are staggered at how long, and it's all sensible advice.
Australia’s largest airports join forces in the fight against human trafficking
A great initiative for a very worthy cause! Nice to see the travel industry doing good.
Wendy Wu Tours launches China Business Class upgrade offer
Flying business for pleasure, on Cathay too, we like the sound of that.
Travel advisors are invited to join Tokyo Tourism webinar
What is the next best thing after going to Tokyo? Going to a webinar about going to Tokyo.
CT Partners wraps up landmark 20th annual conference in Hội An
OK, so they worked hard, and earned some downtime in Hội An, next year? The Maldives - dive time?
Uniworld rewards travel agents with gift cards just in time for Christmas
An initiative which rewards agents with gift cards! We like it.
Wrap-up of Black Friday Sale from Insight Vacations, Trafalgar and Costsaver
Once the domain of fridges and TVs, the Black Friday Sales now include trips.
BIG4 Holiday Parks announces new campaign
Costs of living crisis might also mean a mystery bag on the barbie as opposed to a steak.
Carnival appoints new local key account manager, plus adds new Queensland BDM role
Lookout banana-benders, Carnival is doubling down on local cruise support with these roles.
ME by Melia opens in Malta
Preferred destinations seem to happen in waves, and our pick is that Malta is on the crest of one.
Scenic Matavai Resort Niue appoints James Shilton as GM
We imagine relocating from Broome to Niue is quite the move!
G Adventures Change Makers Challenge and a chance to score GX Summit spot for Jordan
Having joined the GX Summit in India, we guarantee that this is one worthy competition to enter.
FCM Consulting appoints Jason Kramer as senior air consultant
We want Jason's new job title to be 'leader of air' - it sounds like a Marvel character.
Outback Spirit announces Fly Free promotion
Making the inaccessible accessible, would then make it, ummm, accessible, so is it really inaccessible?
Women in Travel: Philippine Airlines’ Krystle Ramirez on gender diversity in aviation
We love Krystle's can-do attitude. Definitely one to read if you are struggling with the motivation today.
Mandarin Oriental appoints Amanda Hyndman COO, following Christoph Mares’ retirement
As COO and head of people & culture, does that mean she has to assess her own probation period?
Etihad Airways flagship Airbus A380 makes grand return to Paris
While they have just four in the fleet, it makes sense to keeping flying A380s that were launched two decades ago.
Aussies urged to ‘move to a safe location’ following deadly Spanish floods
Terrible news coming out of Spain this week. Thoughts for everyone impacted.
Sydney’s newest event venue to open Wunderlich Lane
We've been working in this neighbourhood since the 1980s and finally it starts to get trendy, or "lit" as the kids say.
Experience yoga… in the SKY at Aura Skypool!
You better have good balance, because that really is a long long way down.
La Vie Hotel set for 2026 Melbourne opening
We do wonder what happens to all those golden shovels once a few grams is lifted for the photo opp.
Sign up now for Regent’s annual travel advisor appreciation month
Here at Travel Weekly EVERY DAY is travel advisor appreciation day because we just love you all so much.
Virtuoso reshuffles executive team as it continues global expansion
A more fun way to do this would be if everyone in the boardroom had to play musical chairs.
Go Insurance partners with On Call International to enhance traveller emergency assistance
We hope on call means you can be heard above the din of arguing over who caused the moped to collide with the tuk-tuk.
La Collection launches LC DMC
If you put La in front of a word does it make it a more fancy option? Just asking?
Travellers Choice award winners 2024 announced
Winner, winner and a chicken dinner at Sydney Town Hall to top off a massive three-day conference.
Emotional Travellers Choice Conference that wasn’t hard to bear
It started with laughter and cocktails, then inspired keynote speakers & finished with worthy winners. What a weekend!
ATEC celebrates industry excellence with annual awards
The Australian Tourism Export Council (ATEC) has announced the winners of its prestigious annual awards, recognising exceptional contributions from across our tourism export industry. These awards, announced during ATEC’s annual Meeting Place event last Wednesday, highlight individuals, businesses, and partnerships which have shown outstanding leadership, dedication, and innovation in promoting Australian tourism. Captain Trevor Haworth […]